Blockchain and ERP integration: A Guide
In today’s day and age, blockchain is a mainstream concept, i.e. its use is no longer restricted to a privileged few. This change, in turn, has had several significant consequences for the world in general. However, let’s contain our focus on one application, in particular: ERP systems. Though blockchain and ERP seem to be two completely different systems, they find common grounds in specific challenges companies today face. Take inventory management and logistics, for example, managed via ERP systems, these two aspects are vital to any company’s operations, right? Unfortunately, it can be very time consuming and often also suffers from a lack of transparency.
But these are not the only problems plaguing ERP systems. One other critical issue faced with ERP systems is that companies often struggle to monitor the availability and non-availability of specific resources in real-time. It, in turn, takes a toll on the company’s productivity as well as efficiency. Then there are also the challenges associated with bring-your-own-device and cloud storage for use with ERP systems. While it is a convenient option, it allows employees to connect to the company’s operations as and when required. Though it can be quite a task for the company’s back-end and IT teams to ensure and establish the identity of the devices’ owners, i.e., if they are authorized employees or not. The identity verification problem can then escalate into a risk of a data breach because the damage caused by an unauthorized device accessing a company’s ERP systems is immense.
Thankfully, these problems can be addressed with the integration of ERP systems and blockchain. Here are some benefits of this integration to show how that is possible.
- Process automation: Smart contracts, driven by blockchain, help companies automate many of their processes that do not necessarily require human intervention. For example, you can set up an invoice to be generated and sent to a client on a particular date every month, provided there are no variables, of course.
- Security: Thanks to the very foundation of blockchain, i.e., protection of data, companies can ensure safety in their processes. It also provides visibility across the network, which makes it extremely simple to keep an eye on operations and their progress.
- Fortify ERP systems: Yet another vital benefit of integrating blockchain with an ERP system is that it helps companies put together highly capable and agile systems as a result. They are also very sharp, ensuring companies can keep up with evolving technologies, i.e., their policies don’t become obsolete every time a new technology comes around. In addition to that, leveraging blockchain technologies with ERP systems also enables a high degree of customization so as to ensure that the system is primed to deliver on the company’s unique requirements.
As evidenced from the above discussion, the union of blockchain technology with ERP systems stands to empower and assist companies in several crucial ways. But to ensure you get the integration right, you should get in touch with a trusted vendor for enterprise software development services.